Middle East battle and AI-induced sell-offs slam the brakes on City floats

Hopes of a resurgence of stock market listings in London are set to be derailed by turmoil created by the Middle East war.

City investment bank Peel Hunt said the conflict is causing ‘spikes in volatility’ on global markets and ‘pauses near-term’ plans for initial public offerings (IPOs).

Online travel agent Loveholidays looks set to delay its £1billion flotation amid disruption to travel plans caused by the war.

The company – majority-owned by buyout group Livingbridge – was expected to announce its plans this month but may move this to after Easter. 

And Norwegian software firm Visma may delay plans for a £16.5billion listing after a sell-off of software stocks.

Peel Hunt analysts noted that the IPO pipeline for 2026 was always weighted towards the second half of the year.

Floats: A report by City investment bank Peel Hunt said the Iran conflict is causing ‘spikes in volatility’ on global markets and ‘pauses near term’ plans for so-called initial public offerings

It added: ‘Recent market volatility on the back of the Iran conflict and the sell-off in AI-impacted sectors have compounded that further.’

The prospect of a combination of high inflation, rising unemployment and weak growth ‘provide a more challenging backdrop for IPOs’, it said.

There had been growing optimism about IPOs this year after listings last year included tinned tuna firm Princes Group and the specialist lender Shawbrook.

Among those thought to be looking at floating in London are RAC, Waterstones and Monzo.